EDS wins $1.5bn contract extension

Computer services provider Electronic Data Services (EDS) said today that it had won a contract extension from office equipment…

Computer services provider Electronic Data Services (EDS) said today that it had won a contract extension from office equipment maker Xerox worth $1.5 billion over five years.

EDS also said it had agreed to drop litigation against Xerox involving a dispute with the original contract. The contract extension is valued at $1.5 billion for five years, including an initial service period of two years and a three-year option, EDS said.

Under the terms of the contract, EDS will continue to operate the Xerox worldwide computer and telecommunications network and expand the scope of services it provides to Xerox.

EDS also said it had awarded Xerox a five-year contract valued at $50 million as part of the US Marine Corps Intranet contract.